On average, those impacted could be missing £9,500, as MSE states thousands of UK households could have unclaimed pension funds.
Those impacted could be missing £9,500(Image: ITV)
Martin Lewis’ Money Saving Expert (MSE) team has urged pensioners to make a three-step check to ensure they haven’t lost money.
On average, those impacted could be missing £9,500, as MSE states thousands of UK households could have unclaimed pension funds.
This happens because over time you may have switched employers, changed pension providers, or because your pension company has merged or undergone rebranding, reports the Manchester Evening News.
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On its website, MSE stated: “There can’t be many more (potentially) profitable uses of time than to spend a bit of it checking if you’ve any lost pensions – especially for those who worked for lots of different firms over lots of years.
“Astoundingly, more than £30 billion’s worth is thought to have gone astray, worth an average of £9,500 for those that have lost one (though some amounts can be far bigger).
“This guide explains how to find lost pensions for free, which could seriously bolster your retirement.”
Common reasons for having mislaid pension funds
Relocating without updating your contact details with your pension provider.
Switching jobs frequently throughout the years.
Your pension provider has merged or undergone rebranding.
MSE added: “Nowadays, employers must automatically enrol most employees into their workplace pension schemes, so you’re likely to have pensions from more recent jobs – but this wasn’t always the case.
“Pension rules have changed over the years, so whether you built up a pension could depend on when and how long you were working for.”
MSE’ three-step pension check
If you left your job before April 1975, it’s likely that any pension contributions you made were refunded. Additionally, some schemes didn’t require members to make contributions, meaning you wouldn’t be entitled to any pension benefits if this applied.
If you left your position between April 1975 and April 1988, were over 26 years old, and had completed at least five years of service by the time you left, you may have a preserved pension. This eligibility applies only if you have completed at least two years of service. If you left with fewer than two years of service, your contributions may have been refunded.
If you left your position after April 1988, you may be eligible for a pension, provided you have completed at least two years of service. If you left your position with less than two years of service, your contributions may have been refunded.